New SEC Investigation Of Bank of America For Raiding Client Funds

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New SEC Investigation Of Bank of America For Raiding Client Funds

The Wall Street Journal is reporting that the SEC has begun an investigation of Bank of America for violations of rules designed to safeguard client funds.

According to WSJ sources familiar with the investigation, for at least the last three years, Bank of America has undertaken complex trades and loan schemes to save tens of millions of dollars a year in funding costs and to free up billions of dollars for trading that the bank would have had to keep off-limits with out the complex maneuvering.

More on new Bank of America investigation

The sources note that the SEC is currently investigating whether the Bank of America’s complex trade strategy violated regulations to safeguard customer funds and whether the bank was fully open with regulators regarding its actions.

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